China's "core" steadily advancing toward the global stage with double growth in industry revenue and profits

Securities Times reporter Zhang Juanjuan

In recent days, global storage chips, MCUs, and other core semiconductor products have entered a new round of price-hike fervor, with cost pressure gradually flowing through to consumer-end markets. Driven by a surge in demand for artificial intelligence computing power and multiple factors such as geopolitics, the semiconductor industry chain’s business sentiment is expected to continue recovering.

Accelerating growth in revenue and net profit

According to Securities Times · DataSage statistics, as of now, relevant data related to net profit for 173 A-share semiconductor companies for 2025 (the lower bound of performance forecast data, and the same applies below) have essentially been fully disclosed, with only 8 companies yet to release their annual reports or performance forecasts.

Overall, among the 165 semiconductor companies that have disclosed net profit, 115 reported profits in 2025, accounting for nearly 70%, slightly surpassing the 2024 level.

Looking back, in 2024 semiconductor companies’ revenue increased year over year by 21.44%, and net profit increased year over year by 15.42%. In 2025, semiconductor companies’ revenue grew year over year (comparable basis) by nearly 24%, and net profit increased by 29.23%. Both revenue and net profit growth rates were higher than the previous year, indicating that industry growth is accelerating.

With listed companies’ performance continuing to improve, this is a microcosm of how the semiconductor industry has turned from sluggishness to recovery. After the down periods in 2022 and 2023, since 2024 the semiconductor industry has seen a strong rebound, and in 2025 it has even accelerated further.

At the 2026 Shanghai International Semiconductor Exhibition recently held, an even more positive signal was conveyed: with AI-driven storage capacity expansions, advanced logic process ramp-ups, and a surge in demand for advanced packaging, the semiconductor equipment industry has entered a phase of high-growth turning. At the same time, domestic equipment has been making efforts across multiple links. Leading platform-style enterprises have been continuously improving their layouts, and 2026–2027 will be the key period for a significant increase in domestic substitution rate.

Net profits hit multi-year highs for 46 companies

From the perspective of individual companies, 46 semiconductor firms’ 2025 net profits reached the highest level since 2019. Among them, 14 companies had net profit scales exceeding 1 billion yuan; among them, Hegel Information, Ruentai Technology (688008), Micron Technology (688012), and Cambricon all exceeded 2 billion yuan.

Hegel Information’s 2025 net profit reached 2.54B yuan, up 31.66% year over year. The company expects its net profit in the first quarter of this year to rise 22.56% to 42.32% year over year. Soochow Securities (601555) said that Hegel Information has two leading domestic products: CPU and DCU. As the industry’s innovation-driven computing solutions move forward steadily, the company’s CPU product revenue is expected to grow steadily. The company’s DCU product performance has a leading position in the first tier; new products continue to iterate, and sustained high growth in performance validates the industry’s strong business sentiment.

Ruentai Technology’s 2025 net profit increased by more than 58% year over year. The main beneficiary is the AI industry trend; industry demand has been strong. The company’s interconnect-category chip shipments have increased significantly, driving a substantial year-over-year increase in the company’s operating performance for 2025 compared with the same period last year.

Cambricon’s 2025 net profit was 2.06B yuan, the first time it has achieved profitability since listing. During the reporting period, benefiting from the continuous rise in AI industry computing power demand, the company leveraged its strong product competitiveness to keep expanding the market and actively promoted the rollout of AI application scenarios.

Worth noting is that among the above 14 companies, 7 saw their net profit first exceed 1 billion yuan. Besides Cambricon, there are also Saimicro Electronics, CCTD Bluecom, Changchuan Technology (300604), Tongfu Microelectronics (002156), and others.

Semiconductor companies accelerating overseas expansion

In recent years, the global semiconductor supply chain has experienced severe fluctuations, shifting from the initial “chip shortage wave” to the subsequent inventory adjustment period with a market rebound. Against this backdrop, China’s “chips” have accelerated their pace toward independent and controllable development. Related products have gradually won recognition from global customers, demonstrating strong resilience and vitality.

According to customs data, in the first two months of this year, China’s integrated circuit (chip) exports reached $43.3 billion, up 72.6% year over year. The growth rate far exceeded the overall export growth rate of 21.8% in the same period, and it also reached a new high in recent years.

Semiconductor industry companies are accelerating overseas expansion. According to DataSage, currently there are 59 A-share semiconductor companies that have disclosed overseas business revenue. In 2025, their total overseas business revenue exceeded 101.8 billion yuan, up nearly 23% year over year, an increase of more than 6 percentage points compared with the previous year.

Among these 59 companies, the proportion of companies whose overseas business revenue grew year over year in 2025 is close to 80%. 18 companies had overseas business revenue exceeding 1 billion yuan, and all increased compared with the previous year. Hegel Information, SiTime-S, Zhenwei Storage, and Ruentai Technology all saw overseas business revenue grow by more than 50% year over year in 2025.

Hegel Information’s 2025 overseas business revenue was 6.91B yuan, an increase of nearly 108% compared with the previous year. The company said this was mainly due to factors such as foreign-exchange settlement, logistics convenience, trading habits, and taxes.

16 concept stocks with strong performance and deeply beaten valuations

Judging by market performance, the 2025 semiconductor sector performed strongly. The Shenwan semiconductor industry index’s cumulative gain was nearly 46%, ranking among the top across all industries. Since this year began, the index has entered a pullback. As of April 3, the Shenwan semiconductor industry index fell slightly by 0.85%. Many companies within the industry saw significant share-price pullbacks, including several high-performing stocks.

According to DataSage statistics, this year, there were 16 semiconductor individual stocks with a price decline of more than 5% and that underperformed the semiconductor industry index in 2025, and that achieved profitability in 2025 with a year-over-year net profit increase of more than 30%.

Ranked by market performance, there were 11 stocks with a decline of more than 10% since 2026 began, including SMIC International, Allwinner Technology (300458), Jinghe Integrated, and Silan Microelectronics (600460), and others.

SMIC International’s gain in 2025 was below 30%, and its decline since the beginning of this year has exceeded 25%. The company said its 2025 capital expenditures were $8.1 billion. In 2026, capital expenditures are expected to be roughly flat compared with 2025, and corresponding capacity will also be increased gradually thereafter.

Silan Microelectronics’ gain in 2025 was below 10%, and its decline since the beginning of this year has been close to 13%. Since 2024, the company’s performance has returned to a positive track. In that year it achieved net profit of 220 million yuan, and its 2025 net profit lower bound is 330 million yuan, up more than 50%. The company’s subsidiaries, including its Silan Integrated 5/6-inch chip production lines, its Silan Xing 8-inch chip production lines, and its key equity-invested enterprise Silan Jike 12-inch chip production line, all achieved full-capacity production.

From research visits, there were 8 stocks that received research from 10 or more institutions since the beginning of this year. Lixin Technology (688018) and SiTime-S received more than 100 rounds of research. Himax Technologies (603160), Xingdong Lianke, and Xinpengwei all received more than 20 rounds of research.

(Editor: Zhang Yan)

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